Bengaluru Raid: Cold Storage for Fruits Found Stocking Garments, GST Officials Seal Unit

GST officials raided a KAPPEC cold storage unit near Bengaluru, discovering four truckloads of illegally stored readymade clothes instead of farm produce. The facility, managed by Fiza Agro Ventures, was sealed.

Bengaluru: On Monday, a major raid happened at a cold storage unit in Poojenahalli, near Devanahalli. GST officials swooped in on the KAPPEC cold storage and found something totally unexpected. Instead of fruits and veggies, the place was being used to illegally store four truckloads of readymade clothes! The officials immediately seized the garments and sealed the entire unit.

But wait, there's more. The team also found a room full of illegally stored masala powders. That room has also been sealed in front of KAPPEC officials.

For the masala powders, the company later showed bills proving that tax was paid. So, the process to release those goods has started. However, for the readymade clothes, the company managing the storage, Fiza Agro Ventures Private Limited, has failed to show any bills so far. This has raised strong suspicions of a major tax evasion scam.

Here's the backstory. The Karnataka State Agricultural Produce Processing and Export Corporation (KAPPEC) had built this cold storage to help farmers in the Devanahalli area. The idea was simple: farmers could bring their fruits and vegetables here for grading, processing, and safe storage. KAPPEC had handed over the management of this facility to Fiza Agro Ventures Private Limited, a company owned by former MLC B.M. Farook.

Fiza Agro Ventures did not pay rent as per the agreement

But Fiza Agro Ventures wasn't playing by the rules. The company allegedly didn't pay the rent to KAPPEC as per their agreement. Because of this, KAPPEC had already forfeited their security deposit and even issued an order to terminate the contract. But the Fiza company simply didn't respond or hand back the facility. Meanwhile, KAPPEC got a tip-off that some fishy, non-agricultural activities were going on at the Poojenahalli cold storage. They immediately alerted the Commercial Tax Department. This information led to the raid by the Karnataka Commercial Tax Department officials, which blew the lid off the whole illegal operation.

KAPPEC's MD, C.N. Shivaprakash, spoke to Kannada Prabha about the whole scene. He said, "Fiza Agro Ventures did not follow the agreement. They ignored our notices. We even legally terminated the contract, but they refused to vacate the cold storage. Now, their illegal activities have been exposed."

Godown to be taken over after investigation

He added, "This godown was not built for storing readymade clothes or masala powders. It was meant to be used for processing and storing fruits grown by farmers around Devanahalli. Our officials were present as witnesses during the raid. Once the GST investigation is over, KAPPEC will take full possession of the cold storage."